Plutus Powergen Share Discussion Threads

[2pablo] 27/2/2018 11:20

I missed the Plutus Tweet on Chelverton on Sunday. They have got a decent holding in PPG in their Trust

[1savvyinvestor] 26/2/2018 22:18

and they haven't sold anything in the drop....

[pbanus] 26/2/2018 21:52

Chelverton Growth Trust is an investment trust.

David Horner who manages it is a top fund manager who has a Citywire AA rating. The fact they have such a high proportion of PPG in their fund speaks volumes about where they think it's going to go.

[1savvyinvestor] 26/2/2018 18:19

Not a broker so no buy rec. But the trust is here ;

[2pablo] 26/2/2018 17:54

Iceboy - can you share any 'Chelverton' note or recommendation?

Nice to read the calcs on the worth of the bio-diesel sites

[1renard] 26/2/2018 16:39

seems a bit strange savvy not to include the existing revenue for spvs. Surely the £7.2 million should be added to any potential mentioned above? So add the £7.23 million to your suggested £18 million from a sale? This starts to look more and more undervalued.

[1savvyinvestor] 26/2/2018 15:32

yes. I haven't been factoring in money already earned by the spvs. As I say - I'm being cautious.

[rhug1966] 26/2/2018 15:22

Thanks Savvy. Using the £1m per site income formula, the diesel sites will have raised £16m by the time the sites are available for sale in 2019, if the additional 3 sites are built this year. That needs to be split 55% to 45%. £7.2m to Plutus...lets hope they can execute.

[marvin9] 26/2/2018 15:20

Well done Cody, hope it goes well for you

[iceboy] 26/2/2018 15:05

Good to see that Chelverton are still bullish about Plutus despite the recent share price decline. They are not troubled by it and neither am I.

The last two RNSs are brilliant. The future of Plutus looks very bright.

[1savvyinvestor] 26/2/2018 14:51

Rhug. My reading of the situation is this. Rockpool made two investments in these projects. They put up around £3.2million per site through EIS investments. Their expectations for investors will be to at least get this back...and their investors having claimed 40% EIS relief will be well up even on a break even. Then each site needed another £2 million + for build out which was provided by loans paying 8% annually. So ; any sale must make £5.5 million approx to satisfy Rockpool. Over the past year or so their has been much speculation with regard to the actual sale price of 20 mw sites. Figures have averaged around £10 million per site which sounds reasonable given revenues of over £1 million annually. The £4.5 million profit would then be split 45 % Plutus and 55% Rockpool. This would give us around £18 million profit on our work. I am being deliberately cautious with this estimate and it could be substantially higher, but of course could also be less. In my opinion the gives Plutus a fantastic base for expansion into gas and battery storage with higher returns and good cash flow.

[bishopawn] 26/2/2018 14:29

Just picked up the Tweet from Plutus confirming the continuing support of Cheverton Growth Trust, where PlutusPowergen occupies 17.46% of their Portfolio.

Consult the link above to see for yourselves.

[rhug1966] 26/2/2018 10:10

Thanks for the reply, Savvy. Rockpool will want a return on their investment, hopefully they'll get a tidy profit. However, Plutus need to get circa £28M from the asset sale (45% of the sales) to pay off the asset finance & retained losses. I'm not saying this isn't possible...they basically need to sell them off for what they cost to build. I asked at the Manchester presentation what a 20MW asset might sell for but all I got was what they cost to build which was about £5.5m.

[codydotcom] 26/2/2018 09:50

I thought about this over the weekend. I figured that if I am going to spend time on these boards (both boards) then I ought to have some skin in the game. So I've taken a small position (50k shares) this morning.

I'm not suddenly über-bullish. I just know that i'll never get around to doing the legwork unless i have some investment.

[codydotcom] 26/2/2018 09:50

I thought about this over the weekend. I figured that if I am going to spend time on these boards (both boards) then I ought to have some skin in the game. So I've taken a small position (50k shares) this morning.

I'm not suddenly über-bullish. I just know that i'll never get around to doing the legwork unless i have some investment.

[nw99] 26/2/2018 09:29

Added here

[1savvyinvestor] 25/2/2018 21:57

Rhug. Plutus owe nothing to Rockpool. The financial risk is entirely on them!! That is one of the attractions here. Rockpool need to reclaim the investors money who were seeking EIS relief. In addition the asset finance needs paying off. Any sale above the payoff price is cash in Plutus' pocket. In the unlikely event that the price offered for Rockpool sites was lower than expected Plutus would probably buy themselves for a knock down price.

[bishopawn] 25/2/2018 18:55

I beg to differ with Savvy on the point of "Buy" recommendations from AJ Bell. We can see from the quality of their share mag they are a class act! No bog standard A4 one sided sheet with ten share tips. AJ Bell has 164,500 customers/clients and they could move the price if these investors decided to get involved.

I do agree with Savvy, though, that any "Buy" recommendation only has credibility, if it is based on solid news out of Plutus, which is what we are all waiting for.

Clearly last week some have already decided not to wait for that, and to get involved now rather than later, which I reckon is a smart move. Why wait for the price to be higher before buying, especially with the availability of two sources of reliable information, Plutus' Presentation and AJ Bell's Report.

[2pablo] 25/2/2018 14:00

Savvy - that's not a Buy note it's a detailed article done by a magazine without any encouragement or inducement by Plutus. It's brilliant. I've put the link on the Twitter main feed which is probably going to lead to me being prosecuted but hopefully not

[rhug1966] 25/2/2018 12:33

Does anyone think the diesel asset sell off in 2019 will cover what we owe to Rockpool, the asset finance and zero the retained losses on the balance sheet ? I reckon this bill to be around £60m. This doesn't include the income that has been generated and will be generated by the diesel sites in the future.

[1savvyinvestor] 25/2/2018 11:12

I personally think buy notes aren't worth the paper they are written on. Analysis is useful but we are all guessing where the share price will go. Events, not buy notes, will drive the price but the more people following Plutus' progress the better as once news drops we should get decent volume and as anyone trading on AIM knows you need volume days to drive share prices.

[nw99] 25/2/2018 08:36

Thanks for this just downloaded it now very detailed and informative article

[montynj] 25/2/2018 08:33

That's very positive for PPG to get a 2 page spread in this month's Share magazine

[bishopawn] 24/2/2018 23:30

Thanks Savvy, readers should scroll down to page 56 to find the write-up on Plutus. I particularly like their summary on the Outlook for Plutus, which close followers like ourselves know all about already, but the wider investing public need to be aware of.
AJ Bell is to be commended for their efforts in that regard. I suppose what the next step should be is a BUY Recommendation from AJ Bell, once deals are clinched and announced vis a vis the gas sites.